Key facts
- RBI Deputy Governor Swaminathan J warned Indian banks about risks beyond balance sheets.
- Geopolitics, climate change, and AI were identified as key sources of uncertainty.
- Banks need to adapt their risk management strategies to these unpredictable factors.
- The Indian financial system is entering this phase with strong fundamentals.
RBI Deputy Governor Swaminathan J has cautioned Indian banks about the evolving risk landscape, emphasizing the need to address uncertainties that extend beyond traditional balance sheet considerations. He highlighted that factors such as geopolitics, climate change, and the rapid advancement of artificial intelligence present complex challenges that require proactive management. Swaminathan J stated that banks must adapt to these unpredictable risks to maintain resilience. Despite these emerging challenges, he noted that the Indian financial system is entering this new phase with robust fundamentals.